Whether you are starting a brand new business, or making changes to an existing one, it is important to remember that no business can run without funds. There are many ways to raise money to fund a business venture. Several factors can determine which capital-raising effort will be worthwhile, such as the age of the business, why funds are needed, and how much will it cost you, whether short-term or long-term, to actually get the money in your hands. Common options are: 1. Do It Yourself
You, the business owner, are the single most important person involved in the process of starting and running a business. Always check your own pockets first. Independent financing has been the lifeblood of small businesses since ancient times. Personal bank accounts, zero interest credit cards, and liquidation of personal assets are among the first line of inquiry to be considered for raising the funds you need. Beware: people have invested their life's savings into businesses only to lose everything in the end. 2. Ask Friends and Family Usually, the people around you believe in your ideas and visions. They want you to succeed in your endeavors. What better way for them to prove it than to contribute to your business? They can loan or gift you any amount they feel satisfied with. In addition to helping you, they get the bonus of feeling like they have invested in the next big thing. A drawback to having people close to you invest in your business is the possibility of ruined relationships should the business fail, so be very careful. 3. Traditional Loans Banks and financial institutions offer small business loans. To obtain funding through this route, however, you need a decent credit score, some type of collateral, and a sound business plan. Do some research before taking this route. In the current economic climate, it may be difficult to convince a traditional money-lending institution to part with the cash that you need. 4. Crowdfunding Almost overnight, crowdfunding has become the way to go. Everything from help with medical bills to paying for a funeral can be had by way of an online fundraiser. There are many sites to choose from, each with their own own rules and fees. Raising capital for a business can be tricky, but should not be daunting. Research your options thoroughly before deciding on the one that is right for you. Jonah Engler is a finance expert and an entrepreneur who hails from NYC.
2 Comments
11/4/2018 12:54:19 pm
This information was very useful and I appreciate it so much .
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7/24/2023 02:11:44 pm
Very insightful and helpful! Thanks for posting this
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AuthorJonah Engler is a New York based entrepreneur with a passion for stockbroking and coffee! Check out his pics on his instagram! Archives
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